Jordan Times
Thursday, January 29, 2004
Seminar highlights need for building cooperation among stock markets
By Rami Abdelrahman
AMMAN — Amman Stock Exchange (ASE) Board Chairman Mohammad Hourani attributed the growth in trading stocks and shares to the development in the legislative and technical structure introduced to the ASE, and the improvement in the local capital market especially after legislating the Securities Law No. 76/2002.“These factors reinforced investors' trust in the financial data published by companies. Accordingly, the capital market became more trustworthy to investors,” Hourani said during the seminar entitled “The Role of the Capital Market to Economic Development, the Greek Experience.”
He stressed that the ASE is keen to improve relations with Arab and international establishments noting that the seminar, held by the Greek Thessaloniki Stock Exchange Centre (TSEC) in cooperation with the ASE and the Hellenic Republic Ministry of Foreign Affairs, comes within the framework of a bilateral agreement signed in October 2003 by the ASE and the TSEC to build cooperation between Arab, regional and international stock markets.
ASE executive manager, Jalil Tarif, said the international stock markets must cooperate whether by merger or by strategic alliances to strengthen the stock markets' operations and face international competition.
“The Arab stock markets' total market value equals approximately $300 billion, representing only 0.9 per cent of the international stock markets' total market value and only 0.2 per cent of the international trading volume,” Tarif added.” This is very low and requires more international and regional cooperation to upgrade the performance of stock markets.”
During a presentation on how the stock market is correlated to the economic growth and development of a country, TSEC general manager, Vasilios Margaris, outlined the stages of macroeconomic development, the role of capital market, faster capital accumulation, better resource allocation for the company, the stock market and government economic policy, attracting foreign capital and the Greek experience.
Athena's stock exchange, one of the oldest stock markets in the European Union, was established in 1878 and its total market value is about $85 billion.
The seminar, attended by participants from the ASE and private and public sector representatives, will end on Thursday.